CITY OFFICE REIT INC (CIO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIO - US1785871013 - REIT
6.87 USD
-0.01 (-0.15%)
6.87 USD
0 (0%)
Overall CIO gets a fundamental rating of 3 out of 10. We evaluated CIO against 128 industry peers in the Diversified REITs industry. While CIO seems to be doing ok healthwise, there are quite some concerns on its profitability. CIO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year CIO has reported negative net income.
In the past year CIO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CIO reported negative net income in multiple years.
Each year in the past 5 years CIO had a positive operating cash flow.
1.2 Ratios
CIO has a Return On Assets of -9.62%. This is amonst the worse of the industry: CIO underperforms 90.63% of its industry peers.
The Return On Equity of CIO (-20.78%) is worse than 82.03% of its industry peers.
With a Return On Invested Capital value of 1.55%, CIO is not doing good in the industry: 75.78% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for CIO is in line with the industry average of 3.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -20.78% | ||
| ROIC | 1.55% |
ROA(3y)-0.59%
ROA(5y)5.55%
ROE(3y)-1.18%
ROE(5y)10.12%
ROIC(3y)1.69%
ROIC(5y)1.79%
1.3 Margins
CIO's Operating Margin of 15.18% is on the low side compared to the rest of the industry. CIO is outperformed by 64.06% of its industry peers.
In the last couple of years the Operating Margin of CIO has declined.
The Gross Margin of CIO (60.44%) is worse than 65.63% of its industry peers.
In the last couple of years the Gross Margin of CIO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.18% | ||
| PM (TTM) | N/A | ||
| GM | 60.44% |
OM growth 3Y-7.81%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y-1.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CIO is destroying value.
The number of shares outstanding for CIO has been increased compared to 1 year ago.
Compared to 5 years ago, CIO has less shares outstanding
Compared to 1 year ago, CIO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that CIO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.52, CIO is in line with its industry, outperforming 50.78% of the companies in the same industry.
The Debt to FCF ratio of CIO is 41.21, which is on the high side as it means it would take CIO, 41.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CIO (41.21) is better than 70.31% of its industry peers.
CIO has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
CIO has a Debt to Equity ratio of 1.05. This is comparable to the rest of the industry: CIO outperforms 58.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 41.21 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.25
WACC6.25%
2.3 Liquidity
A Current Ratio of 2.42 indicates that CIO has no problem at all paying its short term obligations.
CIO has a better Current ratio (2.42) than 85.94% of its industry peers.
CIO has a Quick Ratio of 2.42. This indicates that CIO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.42, CIO belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 2.42 |
3. Growth
3.1 Past
The earnings per share for CIO have decreased strongly by -780.56% in the last year.
Looking at the last year, CIO shows a decrease in Revenue. The Revenue has decreased by -3.69% in the last year.
Measured over the past years, CIO shows a small growth in Revenue. The Revenue has been growing by 1.83% on average per year.
EPS 1Y (TTM)-780.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1800%
Revenue 1Y (TTM)-3.69%
Revenue growth 3Y1.43%
Revenue growth 5Y1.83%
Sales Q2Q%0%
3.2 Future
The Earnings Per Share is expected to grow by 12.23% on average over the next years. This is quite good.
CIO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.35% yearly.
EPS Next Y34.84%
EPS Next 2Y16.12%
EPS Next 3Y12.23%
EPS Next 5YN/A
Revenue Next Year-1.16%
Revenue Next 2Y1%
Revenue Next 3Y2.35%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for CIO. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for CIO. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than CIO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CIO is valued a bit cheaper than 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.66 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
CIO's earnings are expected to grow with 12.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.12%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.81%, CIO is a good candidate for dividend investing.
CIO's Dividend Yield is comparable with the industry average which is at 6.50.
CIO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
5.2 History
The dividend of CIO decreases each year by -10.58%.
CIO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of CIO are negative and hence is the payout ratio. CIO will probably not be able to sustain this dividend level.
DP-18.39%
EPS Next 2Y16.12%
EPS Next 3Y12.23%
6.87
-0.01 (-0.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners63.67%
Inst Owner Change20.23%
Ins Owners4.33%
Ins Owner Change0%
Market Cap277.27M
Revenue(TTM)168.89M
Net Income(TTM)-127.80M
Analysts72.5
Price Target6.25 (-9.02%)
Short Float %1.4%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Yearly Dividend0.59
Dividend Growth(5Y)-10.58%
DP-18.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1198.68%
Min EPS beat(2)-2408.25%
Max EPS beat(2)10.89%
EPS beat(4)2
Avg EPS beat(4)-651.41%
Min EPS beat(4)-2408.25%
Max EPS beat(4)10.89%
EPS beat(8)4
Avg EPS beat(8)-335.39%
EPS beat(12)7
Avg EPS beat(12)-258.23%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.18%
Revenue beat(12)3
Avg Revenue beat(12)-0.7%
Revenue beat(16)6
Avg Revenue beat(16)0%
PT rev (1m)-4.55%
PT rev (3m)-4.55%
EPS NQ rev (1m)13.04%
EPS NQ rev (3m)23.08%
EPS NY rev (1m)76.54%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.64 | ||
| P/FCF | 17.66 | ||
| P/OCF | 5.28 | ||
| P/B | 0.45 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)-3.17
EYN/A
EPS(NY)-0.4
Fwd EYN/A
FCF(TTM)0.39
FCFY5.66%
OCF(TTM)1.3
OCFY18.95%
SpS4.18
BVpS15.24
TBVpS14.61
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -20.78% | ||
| ROCE | 1.97% | ||
| ROIC | 1.55% | ||
| ROICexc | 1.58% | ||
| ROICexgc | 1.61% | ||
| OM | 15.18% | ||
| PM (TTM) | N/A | ||
| GM | 60.44% | ||
| FCFM | 9.3% |
ROA(3y)-0.59%
ROA(5y)5.55%
ROE(3y)-1.18%
ROE(5y)10.12%
ROIC(3y)1.69%
ROIC(5y)1.79%
ROICexc(3y)1.72%
ROICexc(5y)1.83%
ROICexgc(3y)1.79%
ROICexgc(5y)1.9%
ROCE(3y)2.14%
ROCE(5y)2.27%
ROICexgc growth 3Y-4.09%
ROICexgc growth 5Y-6.09%
ROICexc growth 3Y-3.25%
ROICexc growth 5Y-5.38%
OM growth 3Y-7.81%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y-1.27%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 41.21 | ||
| Debt/EBITDA | 7.49 | ||
| Cap/Depr | 60.68% | ||
| Cap/Sales | 21.81% | ||
| Interest Coverage | 0.74 | ||
| Cash Conversion | 60.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 2.42 | ||
| Altman-Z | 0.52 |
F-Score5
WACC6.25%
ROIC/WACC0.25
Cap/Depr(3y)52.99%
Cap/Depr(5y)267.48%
Cap/Sales(3y)18.45%
Cap/Sales(5y)93.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-780.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1800%
EPS Next Y34.84%
EPS Next 2Y16.12%
EPS Next 3Y12.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.69%
Revenue growth 3Y1.43%
Revenue growth 5Y1.83%
Sales Q2Q%0%
Revenue Next Year-1.16%
Revenue Next 2Y1%
Revenue Next 3Y2.35%
Revenue Next 5YN/A
EBIT growth 1Y-9.87%
EBIT growth 3Y-6.49%
EBIT growth 5Y-1.18%
EBIT Next Year231.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-23.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.4%
OCF growth 3Y-7.01%
OCF growth 5Y3.53%
CITY OFFICE REIT INC / CIO FAQ
What is the fundamental rating for CIO stock?
ChartMill assigns a fundamental rating of 3 / 10 to CIO.
Can you provide the valuation status for CITY OFFICE REIT INC?
ChartMill assigns a valuation rating of 2 / 10 to CITY OFFICE REIT INC (CIO). This can be considered as Overvalued.
How profitable is CITY OFFICE REIT INC (CIO) stock?
CITY OFFICE REIT INC (CIO) has a profitability rating of 2 / 10.
Can you provide the financial health for CIO stock?
The financial health rating of CITY OFFICE REIT INC (CIO) is 5 / 10.
Can you provide the dividend sustainability for CIO stock?
The dividend rating of CITY OFFICE REIT INC (CIO) is 4 / 10 and the dividend payout ratio is -18.39%.